Identify the likely problems that… | Economics

Question 1 Report

Identify the likely problems that can be encountered in the compilation of National Income Account in Nigeria.

Answer

Answer Details

The compilation of National Income Accounts in Nigeria faces several problems:

Inadequate and unreliable data: statistics are scarce, incomplete or inaccurate.
Large subsistence sector: much output (for example food grown and consumed at home) is not sold in the market, so it is hard to value.
Illiteracy: many producers keep no records and cannot supply accurate figures.
Problem of double counting: difficulty in separating final goods from intermediate goods can lead to values being counted more than once.
Large informal sector: many small traders and artisans are outside official records.
Shortage of trained personnel: too few qualified statisticians to gather and process the data.
Problem of transfer payments: deciding what to include or exclude (pensions, gifts) is difficult.
Income earned abroad and by foreigners: hard to measure accurately.

Identify the likely problems that can be encountered in the compilation of National Income Account in Nigeria.